Import of mobile phone components during April-February FY20, according to government figures, hit $7.5 billion - of which 25 per cent was from the land of the dragon.
The government will offer the scheme to five global and domestic entities.
Prime Minister Narendra Modi, while addressing India Inc on Tuesday, had stressed the need for reducing imports and strengthening local products across key categories including ACs.
Three firms- Apple, Samsung, and Huawei - account for 75% of global exports
In terms of production volume, the Indian mobile manufacturing industry produced 22 million mobile phones in 2017